Opening-up fuels trade in services

China's deeper opening-up in the services sector is set to bolster the global competitiveness of Chinese service providers and generate new growth opportunities for the global business community, according to market analysts and business executives.

Rather than merely aiming to narrow its services trade deficit, China is poised to expand room for both imports and exports via wider market access and regulatory liberalization. Digital services, technology-intensive services and other emerging segments are expected to emerge as key drivers of services trade growth, experts noted.

The comments came ahead of the 2026 China International Fair for Trade in Services, scheduled to run from Wednesday to Sunday in Beijing. Around 90 countries, regions and international organizations will stage exhibitions or events, while more than 1,800 companies will participate off-line, underscoring the fair's role as a key platform for opening up China's services sector and for international cooperation.

Unlike trade in goods, services trade involves cross-border transactions in activities ranging from transportation and tourism to telecommunications, computing, education and professional services.

In a congratulatory letter to the 2025 China International Fair for Trade in Services, held in Beijing last year, President Xi Jinping said China will remain firmly committed to expanding high-standard opening-up and accelerate the opening of its services market in an orderly manner on platforms including pilot free trade zones and national demonstration zones for the innovative development of trade in services.

China is ready to work with all parties to jointly promote open and innovative cooperation in global trade in services, build an open world economy, and continuously inject new impetus into building a community with a shared future for humanity, Xi said.

China's trade in services totaled nearly 4.45 trillion yuan ($663 billion) in the first seven months of 2026, up 8.3 percent year-on-year, data from the Ministry of Commerce showed.

Services exports rose 17.1 percent year-on-year to over 1.77 trillion yuan. Services imports reached 2.67 trillion yuan, up 3.2 percent from a year earlier. The country's services trade deficit stood at 900.25 billion yuan in the first seven months of this year.

Analysts and government officials said China's services trade should not be judged solely by the size of its deficit, as shifts in the composition of imports and exports point to a broader structural transformation, while the country's growing demand for high-quality services is creating substantial opportunities for businesses worldwide.

Nie Pingxiang, a researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing, said continued demand for imported services reflects greater market openness, while the rapid expansion of knowledge-intensive exports signals China's growing competitiveness in higher-value services.

Knowledge-intensive services also remain a pillar of China's services exports. Exports of such services, which include telecommunications, information technology, finance, intellectual property and other business services, rose 12.2 percent year-on-year to 948.28 billion yuan during the January-July period, accounting for 53.5 percent of the country's total services exports, statistics from the Ministry of Commerce showed.

Yan Dong, vice-minister of commerce, said China will step up efforts to cultivate new drivers of trade in services during the 15th Five-Year Plan (2026-30) period, as shifts in global industrial chains and accelerating digital and green transitions create new opportunities for the sector.

Yan said the government will strengthen the international competitiveness of producer services, promote exports in areas such as research and development, design, testing, maintenance and supply-chain logistics, and harness technologies including artificial intelligence and cloud computing to develop new models for trade in services.

Beijing, the host city for the CIFTIS, is emerging as a key testing ground for this next phase of services-sector opening-up, with new measures aimed at expanding market access, facilitating cross-border flows and fostering new drivers of trade in services.

Speaking at an investment promotion event in Beijing in late August, Yin Li, a member of the Political Bureau of the Communist Party of China Central Committee and secretary of the CPC Beijing Municipal Committee, said Beijing will expand exchanges in cross-border e-commerce and international trade and make better use of platforms such as the CIFTIS to deepen economic and trade cooperation.

Yin said Beijing aims to bring more high-quality products and services to the Chinese market.

The Chinese capital has already expanded opening-up in areas including telecommunications and biotechnology, and introduced measures to facilitate cross-border data flows. It also plans to further open up modern service sectors such as the digital economy and healthcare.

Specifically, Beijing has extended the application of its negative list for outbound data transfers from the pilot free trade zone to the entire city, covering nine sectors including medical devices. It will also establish a coordinated development zone linked to the China (Beijing) Pilot Free Trade Zone, focusing on healthcare, AI, integrated circuits and commercial space.

The continued opening-up of China's services sector is creating new opportunities for global service providers, as the expansion of two-way trade, digitalization and the internationalization of Chinese companies generates greater demand for cross-border logistics and other professional services.

Poh-Yian Koh, president for China at United States logistics company FedEx Corp, said China's continued opening-up and the expansion of trade in services are creating more opportunities for multinational companies in the Chinese market.

"More resilient and diversified global supply chains, along with the continued growth of digital trade and cross-border e-commerce, are generating new demand for international logistics and connectivity," she said.

To capitalize on these opportunities, FedEx's expanded gateway at Guangzhou Baiyun International Airport in Guangdong province will begin operations by the end of this year.

Similar expansion is taking shape in other service sectors. Messe Frankfurt plans to run roughly 45 exhibitions in the country in 2027 and move further into high-end manufacturing and technology, with the German trade fair organizer exploring new shows in areas including power electronics, additive manufacturing and factory automation.

Stephan Buurma, a board member of Messe Frankfurt, said the company will expand its portfolio through acquisitions and new launches, moving beyond established areas such as textiles, consumer goods and automotive.